In today’s briefing:
- Xanadu (XAM AU): A Mongolian Face To A Mongolian Project
- [Alert] Sell HAVAS
- [Alert] Sell Garrett Motion
Xanadu (XAM AU): A Mongolian Face To A Mongolian Project
- Back on the 21st May, Xanadu Mines (XAM AU), a Mongolian copper-gold mining play, inked an off-market deal with Bastion @A$0.08/share in cash.
- Bastion comprises Singapore-based Baroo (comprising board members from Mongolia) and Xanadu director Ganbayer Lkhagvasuren. Bastion is also subscribing for 286.8mn shares, at A$0.06/share, or 13% fully diluted.
- A follow-up Q&A session is worth listening to in full to gauge why Zijin (JV partner and 19.8% shareholder) may view Bastion taking control of XAM as a good thing.
[Alert] Sell HAVAS
- Since I recommended Havas about a month and a half ago, the stock is up about 19% while the Euro has appreciated ~4%.
- As such, the position has appreciated by ~23% in a month and a half.
- While my price target of €1.89, implies additional upside of 20%, the stock is not as compelling of a bargain today. I plan to sell my HAVAS shares and redeploy proceeds into higher conviction ideas.
[Alert] Sell Garrett Motion
- I’m closing my Garrett Motion (GTX) recommendation.
- I’ve been trying to understand why the stock has been so strong since reporting earnings, and I can’t figure it out.
- The quarter was fine but not exceptional. The story remains the same.
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